Saturday, 8 November 2014

Companies Act 1956: D-MAT Shares

D MAT Shares

De materialized Shares are the
shares issued in the form of account, this form of shares helps in faster
trading of shares. It helps in saving the time taken in transfer of shares. The
de-mat shares are in the form of depository’s entries and no share certificate
is issued.

It
is compulsory for the companies to issue shares in the form of De-MAT however
if the shareholder demands then the company may issue share certificates in the
physical form.